The world of cryptocurrency is now a mainstream and legitimate revenue stream, and a great way to broaden your portfolio. But many people still struggle to understand what cryptocurrency is or how it works, and for many, the stereotypes of its black-market origins still linger. During its formative years, cryptocurrency was incredibly appealing to criminals who were attracted by its anonymity and lack of government control, but those stereotypes are largely unfounded today. In fact, the realities of cryptocurrency spending are much more every day.
According to a new report released by Visual Objects, the vast majority of cryptocurrency spending goes on relatively mundane and everyday items, with 38% of cryptocurrency owners using it to buy food, 34% using their cryptocurrency to buy clothes and 29% of owners purchasing stocks. This is almost directly opposed to how non-cryptocurrency owners expect it to be spent, with 40% of those questioned predicting spends in stocks, 30% in illegal items, and 24% surmising that cryptocurrency would be spent on electronics.
Whilst this study shows just how mundane and every day the average cryptocurrency expenditure really is, they also reveal something much more interesting: that cryptocurrency remains misunderstood, and that misinformation surrounding the industry still abounds. Fewer than a fifth of people (16%) questioned for this study had ever purchased cryptocurrency, which also shows us that whilst its use is certainly on the rise, it is nowhere near being a mainstream commodity right now. To counter this misinformation, it is important to share knowledge about cryptocurrencies and present this in mainstream arenas.
Choosing the Right Cryptocurrency
There are thousands of different cryptocurrencies available. Perhaps the most widely recognized is Bitcoin, but that doesn’t necessarily mean that Bitcoin is the right choice for you. You should research the range of cryptocurrencies most easily accessible to you and objectively chose the one that seems like your best fit. Cardano is a great currency to use as an example of this.
As an introduction to Cardano, it is a relative newcomer to the crypto coin arena, launched in 2017. Cardano is a decentralized smart contract platform and digital asset that runs on a public and open-source blockchain, which was founded by experts and researchers. Cardano is the academic’s cryptocurrency and it aims to be more scalable and sustainable than its larger rivals, such as the more well-known Bitcoin. With this in mind, it could be that now is the right time to invest in smaller markets such as these: Cryptocurrency is legitimized by demand and market value, so as demand for the smaller currencies increases, the value of your portfolio will also increase. Admittedly, this also means your risk will increase too, but it is worth balancing the risks with the benefits to determine which currency is best for you.
The Value of Digital Platforms
Digital currency platforms are more valuable now than they have ever been, minimizing the cost of financial transactions, and making it easy to transfer funds anywhere in the world without leaving the house. As Bill Gates once said; “ “If we were building a financial system from scratch today, we’d do it on a digital platform…Digital can lower the cost of a range of transactions by as much as 90%, providing nearly universal access to innovative financial products and services.” So whether you’re looking to purchase something exciting like a holiday or something much more mundane, like a pizza for your dinner, cryptocurrency could well be the perfect way for you to diversify your portfolio, and make ordering those essentials as seamless and convenient as possible.
